The GSMA has warned that the increasing demand for AI infrastructure is driving up smartphone component costs, which could widen the digital divide and make mobile internet less affordable in low- and middle-income countries. According to the GSMA's State of Mobile Internet Connectivity Report 2026, memory prices more than doubled between Q3 2025 and Q1 2026, before increasing a further 80% to 90% in Q2 2026. This spike is feeding into entry-level smartphone prices, potentially slowing progress in closing the mobile internet usage gap.
Despite 4.8 billion people now using mobile internet on their own device, growth slowed to around 160 million new users in 2025 from 190 million in 2024. The report also found that 38% of the world's population, or approximately 3.1 billion people, live in areas covered by mobile broadband but do not use it. Of these, 70% do not own a device, while a further 650 million people access mobile internet exclusively through borrowed or shared devices.
The GSMA attributed the slow growth in mobile internet adoption to handset affordability, which is the biggest barrier to mobile internet adoption across low- and middle-income countries. At the end of 2025, an entry-level internet-enabled handset cost the poorest 20% of people in low- and middle-income countries an equivalent of 44% of their average monthly income. In Sub-Saharan Africa, this figure reached 76%.
According to the GSMA, global smartphone shipments are predicted to suffer their largest annual decline on record, driven by a collapse in the sub-$100 smartphone segment. Emerging markets are forecasted to be hardest hit. The study found that, until a year ago, slashing entry-level smartphone prices to $30 could have made devices affordable for almost 1.6 billion people.
However, rising memory costs now put those price points out of reach. The GSMA called on chipset and memory manufacturers to increase the availability of affordable components. The organization also urged policymakers, operators, and device makers to support measures including device reuse to make mobile internet more affordable.
The GSMA's warning comes as stakeholders demand smarter telecom infrastructure and fresh investment in the sector. The organization emphasized the need for inclusive and affordable mobile internet access, particularly in low- and middle-income countries. The report's findings highlight the challenges faced by these countries in achieving universal mobile internet access.
To address these challenges, the GSMA is advocating for a multi-stakeholder approach that involves chipset and memory manufacturers, policymakers, operators, and device makers. The organization believes that by working together, it is possible to make mobile internet more affordable and accessible to all, regardless of income or location.
Key points
- The GSMA has warned that rising smartphone component costs driven by AI infrastructure demand risk widening the digital divide and making mobile internet less affordable in low- and middle-income countries.
- Handset affordability is the biggest barrier to mobile internet adoption across low- and middle-income countries.
- The GSMA is calling for a multi-stakeholder approach to make mobile internet more affordable and accessible to all.
